India's demand for coal has outpaced supply from indigenous sources, and is expected to increase to about 731 million tonnes by 2011-12 from 474 million tonnes, it said.

As a short-term strategy for immediate returns, Coal India aims to establish joint ventures or equity participation with companies engaged in mining meteorological coal and/or low ash thermal coal.

Over the medium term, it would explore equity participation in greenfield projects while over the long term Coal India plans to acquire or lease coal blocks.

Incidentally, Mozambique, in southeastern Africa, has awarded two coal blocks to the company for carrying out exploration and future mine development.